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CNN Live At Daybreak

Israel's West Bank Barrier Faces Scrutiny in International Court

Aired July 09, 2004 - 06:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


FREDRICKA WHITFIELD, CNN ANCHOR: Will this wall come down? An international court weighs in on a symbol that literally divides the Middle East.
It's Friday, July 9, and this is DAYBREAK.

Good morning.

From the CNN Global Headquarters in Atlanta, I'm Fredricka Whitfield in for Carol Costello.

Now in the news, three hours from now, the U.N.'s International Court of Justice rules on the legality of Israel's 425-mile long West Bank barrier. An Israeli newspaper and Palestinian sources say the court will say the barrier violates international law. We'll have a live report from Israel in 60 seconds.

U.S. Marine Corporal Wassef Ali Hassoun could be on his way to Germany today. Hassoun had been listed as missing and then captured in Iraq. He will be flown to Germany from Lebanon for a medical checkup and debriefing, as his claims of abduction and release get stranger and stranger.

In Washington this morning, a Senate Intelligence Committee releases a report expected to be highly critical of intelligence gathering leading up to the war in Iraq. The report will be released at 10:30 Eastern. CNN will have that live.

And in Indonesia, an American Army sergeant accused of defecting to North Korea 39 years ago is being reunited with his wife at this hour. She is a Japanese woman kidnapped by North Korea decades ago.

Keeping you informed, CNN, the most trusted name in news.

Let's get our first look at the weather for this hour with Chad Myers -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Fredericka.

(WEATHER REPORT)

WHITFIELD: The dispute over Israel's barrier -- documents have been popping up on the Internet, but at the Hague, the International Court of Justice says it will release the only authentic document later on this morning. The court will issue its advisory opinion on whether the barrier Israel is building across the West Bank is legal. CNN correspondent Alessio Vinci is at the barrier near Ramallah -- Alessio.

ALESSIO VINCI, CNN CORRESPONDENT: Hello, Fredricka.

Well, the highly respected newspaper "Ha'Aretz" is reporting this morning that the International Court of Justice will actually release its opinion later today that Israel will have to dismantle the barrier that has been built for the last year and a half and also pay compensation to those Palestinians who have been affected by the construction of that temporary barrier -- temporary, that's how Israel calls it.

Of course, this is because, on the basis of the material, according to "Ha'Aretz," that the court has analyzed and obtained, the court is basically not convinced of the specific route that this barrier has been built and that this barrier has been built because of the security concerns of Israelis.

As well, the "Ha'Aretz" is reporting that the court believes that by building this barrier in portions of the occupied West Bank, that is, the barrier is going against international humanitarian now because it divides Palestinians from their land and from their homes. And therefore it is expected later today that the International Court of Justice will issue a ruling against Israel.

Now, of course, this ruling is not -- a non-binding ruling. Israel does not have to abide by this ruling. It doesn't mean that the construction of the barrier will stop. As a matter of fact, Israeli officials have said that the International Court of Justice is not competent to judge and to give its opinion on such an issue, saying that it is a matter that has to be discussed between Palestinian and Israeli officials. It is a security concern, Israeli officials say, and therefore it is not a matter for an international body.

Back to you, Fredricka.

WHITFIELD: And, Alessio, describe for us the exact location where you are. There is a barrier behind you. But describe the scene there for us.

VINCI: Right. I'm going to step out of the way for a second, also, to give you a bit of a glimpse about what this barrier looks like. As a matter of fact, most of the barrier, which has so far been built, about 440 miles of it, is not like the one you see here, which is, as you see, concrete wall. As a matter of fact, less than 5 percent of the barrier that has already been built is actually concrete barrier. Most of it, so far, has been built, 115 miles or so of it, is chain link fence surrounded by barbed wire and a ditch in order to prevent cars from driving through it.

This is a main checkpoint manned by Israeli forces, of course, and it is for all the Palestinians that live in the north part of the West Bank who are trying to reach Israel proper, or Jerusalem. They have to go to this gate. And this is exactly what the Palestinians are saying, that this fence, or this barrier, as a matter of fact, will actually prevent them from moving freely from one side or the other of the West Bank -- back to you.

WHITFIELD: Alessio Vinci in Ramallah.

Thanks very much.

An official announcement today coming out of the Hague in a few hours from now.

We could learn more today about the circumstances surrounding the capture and release of U.S. Marine Corporal Wassef Ali Hassoun. He was reported missing in Iraq in June and wound up in Lebanon at the home of relatives this week. In between, he appeared blindfolded on a video and was threatened with beheading.

His brother in Utah talked with him by phone.

(BEGIN VIDEO CLIP)

MOHAMAD HASSOUN, BROTHER: He sounded OK. I was told that he had lost some weight, but he's well.

(END VIDEO CLIP)

WHITFIELD: Hassoun is expected to be flown to Germany today for a medical checkup and debriefing.

Let's look at developments on the ground in Iraq in our situation report.

An American soldier has died from wounds he suffered in fighting in Baghdad. That brings the total number of coalition troop deaths to 1,000; 880 of them Americans.

Time is running out for two Bulgarians taken hostage in Iraq. A group loyal to Abu Musab al-Zarqawi is threatening to kill the men if the U.S. does not release all Iraqi detainees. The militants set a 24 hour deadline.

Saddam Hussein's only American attorney has turned to the U.S. Supreme Court for help. He says the dictator's detention violates international and U.S. laws, including Saddam's constitutional right to due process.

Meanwhile, militants are vowing to behead any lawyers who defend Saddam Hussein. A group belonging to the Islamic Jihad delivered the threat on a videotape.

Well, what does Saddam Hussein have to say? Excerpts from a novel supposedly written by the deposed Iraqi dictator are being printed in a London-based Arab newspaper. The newspaper says it received the manuscript from Saddam's personal physician, who fled Iraq after the war. As expected, the book, titled, "Get Out, You Damned" is about the fight between Arabs and Westerners. On Capitol Hill this morning, the CIA could be raked over the coals for its prewar intelligence leading up to the Iraq war. A Senate committee is releasing what we're told will be a scathing report. CNN will have live coverage when the report is released at 10:30 Eastern time this morning, 6:30 Pacific.

There are no specifics, but the Homeland Security Department is telling you to be on alert. Homeland Security Secretary Tom Ridge warned that al Qaeda is planning a large scale attack in the United States before the November election.

(BEGIN VIDEO CLIP)

TOM RIDGE, HOMELAND SECURITY SECRETARY: We live in serious times and this is sobering information about those who wish to do us harm. But every day, every day we strengthen the security of our nation. And as a nation, we are committed to the absolute protection of our citizens. Efforts each of you make to be vigilant, such as reporting suspicious items or activities to authorities, do make a difference.

(END VIDEO CLIP)

WHITFIELD: And you can hear more about this from the homeland security secretary himself when he appears on "AMERICAN MORNING" in the next hour.

But what about the threat to the two upcoming political conventions?

As CNN's Jason Carroll reports, officials in Boston and New York have already been working overtime on their security plans.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT (voice-over): Delegates arriving in Boston for the Democratic National Convention will see security signs long before arriving at the Fleet Center, the site of the convention. Several major bridges, tunnels and an interstate near the center will be closed.

ED FLYNN, MASSACHUSETTS SECURITY SECRETARY: We've worked hard to call upon all of our available assets, from the Boston police, the MBTA police, the state police, federal agencies, area police departments, regional planning groups.

CARROLL: The Secret Service is working with Boston authorities. Subway riders will be subject to random searches. Specially trained civilian volunteers will help.

(on camera): In New York, numerous security measures are planned here at Madison Square Garden, where a 19 block perimeter will surround the site during the Republican National Convention at the end of August.

(voice-over): Some obvious signs in the area -- trash cans will be removed, manhole covers sealed. The Secret Service is involved here, too, especially addressing transit concerns. Police say they reconfigured their transit security plans immediately after a recent trip to Madrid, Spain, where they learned from authorities there what worked and didn't following a terrorist attack in March.

RAYMOND KELLY, NYPD COMMISSIONER: We do not think another attack is inevitable. But we do think that they will try. Our job is to stop them.

CARROLL: In both cities, some of the most sensitive security measures won't be visible. Another non-specific terrorist threat has left some feeling security fatigue.

UNIDENTIFIED MALE: I guess I'm starting to get frustrated by it.

UNIDENTIFIED MALE: Our guard's up anyway here in New York and people are just going to have to be vigilant.

CARROLL: And being vigilant is what authorities in both cities are counting on.

Jason Carroll, CNN, New York.

(END VIDEOTAPE)

WHITFIELD: President Bush heads for Pennsylvania this morning. He has three stops scheduled in the Keystone State and perhaps a few that are not scheduled. At Kutztown University, Mr. Bush will answer questions at an Ask The President event. Then he'll speak in Lancaster before ending a campaign day with a rally in York.

The Pentagon says some of the military records of First Lieutenant George W. Bush were inadvertently destroyed. The destroyed records cover three months during Bush's service in the Air National Guard and the "New York Times" says the records could have established if Bush served in Alabama, as he claims.

Senator John Kerry grabbed a guitar and helped entertain the crowd last night at Radio City Music Hall. Kerry and running mate John Edwards attended two breakfast receptions this morning in New York. Then they head for rallies in West Virginia and New Mexico.

John Kerry told CNN's Larry King last night that Senator Edwards can provide the Democratic ticket with reality checks. And Kerry says he needs that.

(BEGIN VIDEO CLIP FROM CNN'S "LARRY KING LIVE")

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I think that a team is important. I think America wants leadership, Larry, that just tells the truth, deals with real issues and is willing to lift this country up. I think John is the kind of person who is optimistic, connected to small town rural America. He knows the problems and he's the kind of person who's going to look me in the eye and not be afraid to say you're wrong, this is the way we've got to go.

(END VIDEO CLIP) WHITFIELD: Some Republicans have said Kerry chose Edwards after Republican Senator John McCain turned down the second spot on the Democratic ticket. Kerry denied that last night, saying he never made an offer to McCain.

One of John Kerry's biggest supporters will face off this afternoon in a 90 minute debate with independent candidate Ralph Nader. Howard Dean has said that voting for Nader could help re-elect President Bush. In 2000, the Democrats largely ignored Nader's Green Party campaign.

Still to come on DAYBREAK, we'll talk more about the threat warning from the Homeland Security Department. Does the average American citizen need to be concerned?

Then, did he really say that? A member of Governor Schwarzenegger's cabinet is in trouble with some Californians for what he said to a child.

And a major chemical company accused of harming the health of its neighbors. Find out what the EPA plans to do about it.

And later, somebody's got two left feet. Well, make that 312. We'll explain.

This is DAYBREAK for July 9.

(COMMERCIAL BREAK)

WHITFIELD: Your news, money, weather and sports.

It's now 15 minutes after the hour.

Here's what's all new this morning.

The "Tribute In Light" will continue to shine. More than $3 million have been set aside to allow the September 11 memorial to be relit on the anniversary of the attacks for the next five years. The lights symbolize the Twin Towers.

Transportation safety officials say improperly installed oil filters are the likely cause of more than two dozen Honda SUV fires. The "Washington Post" reports that 27 Honda CRVs caught fire shortly after having their first oil change. No one has been injured in the fires.

In money, First Energy Corporation has agreed to pay more than $1 billion to clean up its act. The company had been sued over excessive emissions from its coal burning power plant near Steubenville, Ohio.

In culture, singer David Bowie is finally back home following his emergency heart surgery. Bowie spent nearly three weeks in a German hospital after undergoing surgery to unclog a blocked artery. He was forced to cancel the remaining dates on his European tour.

In sports, one day after capturing the yellow jersey, Lance Armstrong falls back in the pack in the Tour de France. Armstrong is in sixth place, nine minutes, 35 seconds behind the leader. And I have a feeling, Chad...

MYERS: That got a little ugly right in there.

WHITFIELD: Yes, those little snarls on the road there are not pretty ever.

MYERS: Remember when you fell off your bike when you were a kid? That was just a traumatic event.

WHITFIELD: That was devastating.

MYERS: Yes, you lost some skin on your knee...

WHITFIELD: We didn't know devastating, did we? This is that.

MYERS: Good morning, everybody.

WHITFIELD: You know.

MYERS: Good morning, Fred.

(WEATHER REPORT)

WHITFIELD: Those are the latest headlines.

Well, time for a little business buzz now.

You may be cooking breakfast on your favorite non-stick pan about right now. But that Teflon coating could cost Dupont millions of dollars in fines, apparently.

Carrie Lee explains.

CARRIE LEE, CNN CORRESPONDENT: Thank you, Fredricka.

The Environmental Protection Agency is preparing to levy a multi- million dollar fine against Dupont for a chemical it uses when it makes products such as Teflon, Gortex and Stain Master carpeting. Obviously, a lot of people use these products.

Now, it's not a problem to use these products as a consumer. So let me make that very clear. The issue is in the manufacturing of these products. The complaint here states that Dupont did not tell the EPA until 2001 that the company found this chemical in blood samples taken back in 1981 from its pregnant workers, in one case including evidence that the chemical had passed to the fetus of that worker.

Also, tests by 3M, the company that originally made this chemical, which is, in some circles, called C8, has shown high exposure levels can cause problems like liver damage and also reproductive problems in rats. So we're talking about the manufacturing of this chemical.

Finally, in West Virginia, in 1991, the company found the chemical in public water supplies in the towns.

So what the EPA is looking at here is the agency can seek fines of up to $25,000 per day for each day Dupont failed to report this information prior to 1997. So we're talking about potentially $300 million in fines.

For its part, Dupont says it has fully complied with reporting requirements. The company disputes any association between the chemical and harmful effects on humans or the environment. So a very big story out of Dupont and that is a big story we're following today.

And that is the latest business news.

DAYBREAK will be right back.

(COMMERCIAL BREAK)

WHITFIELD: Well, time to check our DAYBREAK legal briefs.

Kobe Bryant's accuser has hired a high profile attorney to handle media concerns. Several media outlets have petitioned to have details of the case released to the public. The 20-year-old woman hired Atlanta attorney Lynn Wood. Wood, you may remember, was the attorney for JonBenet Ramsey's parents and for mistaken Olympic bomber Richard Jewell.

There's a scheduled hearing today in the Michael Jackson case. The judge will hear arguments over a motion to throw out the indictment. Defense attorneys claim the prosecution bullied witnesses in an effort to secure the indictment. Jackson is not expected to attend today's hearings.

How much fat is in the fries? McDonald's has been sued in federal court over its failure to switch over to reduced fat cooking oil. The fast food giant had announced a February 2003 deadline for changing its oil, so to speak. But McDonald's says the change was delayed due to concerns over product quality.

On the docket today, former Enron chief Ken Lay, Adelphia's John Rigas and Martha Stewart.

Legal analyst Kendall Coffey joins us live from Miami, a whole lot.

Let's begin with Ken Lay.

How about that?

KENDALL COFFEY, CNN LEGAL ANALYST: Well, it...

WHITFIELD: Good to see you this morning, first of all.

COFFEY: Great to see you, Fredricka.

And something that a lot of people were waiting for for a long time. Enron was seen as the biggest of all the pirate ships in that fleet that had been sinking Wall Street for a period of time. And Ken Lay, the captain of the ship, is finally facing very, very serious charges, brought into the same conspiracy with former President Jeff Skilling, chief accountant Richard Causey. And they are facing a long trial and a huge prison exposure if convicted.

WHITFIELD: Let's analyze a little bit of what happened yesterday involving Ken Lay. He turned himself in to the FBI and then afterward he very openly approached the cameras. He even acknowledged the cameras when he was checking in, you know, to turn himself in. But afterwards, he addressed the cameras and he said, "I continue to grieve, as does my family, over the loss of the company and my failure to be able to save it. But failure does not equate a crime."

How smart was it for him to, A, acknowledge that there was a problem, but at the same time try to separate himself from the crimes in which he's being charged?

COFFEY: Well, it was an extraordinary thing because at first, one of the first rules of criminal defense is you don't let your client talk. But Ken Lay is not the advantage defendant in the Houston area. He's gone from being a local hero to being a local scoundrel, in the eyes of many. And for that reason, he's so well known that he may think it's very important to send his own personal message not only to the people of Houston, but to potential jurors.

And to acknowledge that things weren't done right is something he's got to do anyway. Everybody knows that Enron was a catastrophe. To say that he did nothing wrong in a criminal sense is the very same message he's going to want to be arguing to that jury.

WHITFIELD: At least a couple dozen indictments have been handed down to various Enron workers. Ken Lay tried to place the blame, also, yesterday. He says it wasn't me, but instead it was CFO Andy Fastow who really is to blame in all of this.

COFFEY: Very predictable, standard stuff. He's a hear no evil, see no evil guy. Even though he was making all that money, he had no idea what was going on because it was all being done by the evil geniuses like Andrew Fastow in the finance department.

We'll see if the jury buys that.

WHITFIELD: He's facing some pretty serious time if found guilty, 175 years in prison, upwards of $5 million in fines. And now apparently the federal government is trying to seize Houston property, his condominium, which is being alleged to have been purchased through monies he gained from Enron.

COFFEY: One of the new phases...

WHITFIELD: What's the difficult of that?

COFFEY: Well, it's a very big problem because one of the new things in the new phase of corporate criminality that began in the post-Enron era is using some of the same tactics that they used to use against drug dealers like freezing assets. They froze Andrew Fastow's assets, Skilling and now Lay is facing that, which creates a huge problem, everything from supporting your family to paying your lawyers.

WHITFIELD: Adelphia founder John Rigas found guilty yesterday of conspiracy, securities fraud and bank fraud. I wonder how much this verdict might, indeed, impact the upcoming Enron trials, as well as next week's scheduled sentencing for Martha Stewart.

COFFEY: Well, that is a powerful message, that verdict. And certainly it's an important validation for the Department of Justice. I think Martha Stewart is going to stand on her own merits. And there's been a lot she's trying to do to avoid jail time. I don't think she's going to be successful. But don't be surprised, Fredricka, if you see some kind of split sentence, something like 10 or 12 months, where she may be able to serve half of it or some part of it in home confinement, the rest in a federal low security prison.

WHITFIELD: Interesting.

Kendall Coffey from Miami, thanks very much.

Good to see you this morning.

Have a great weekend.

COFFEY: Thanks for inviting me.

WHITFIELD: And here's what's all new in the next half hour.

Al Qaeda plotting an attack in the United States -- do Americans really take the warning seriously?

And secrecy surrounding Gitmo -- I'll talk to Bob Franken about what's happening with the detainees in Cuba.

Then, hear the comment from California's education secretary that has some people demanding his resignation.

(COMMERCIAL BREAK)

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Aired July 9, 2004 - 06:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Will this wall come down? An international court weighs in on a symbol that literally divides the Middle East.
It's Friday, July 9, and this is DAYBREAK.

Good morning.

From the CNN Global Headquarters in Atlanta, I'm Fredricka Whitfield in for Carol Costello.

Now in the news, three hours from now, the U.N.'s International Court of Justice rules on the legality of Israel's 425-mile long West Bank barrier. An Israeli newspaper and Palestinian sources say the court will say the barrier violates international law. We'll have a live report from Israel in 60 seconds.

U.S. Marine Corporal Wassef Ali Hassoun could be on his way to Germany today. Hassoun had been listed as missing and then captured in Iraq. He will be flown to Germany from Lebanon for a medical checkup and debriefing, as his claims of abduction and release get stranger and stranger.

In Washington this morning, a Senate Intelligence Committee releases a report expected to be highly critical of intelligence gathering leading up to the war in Iraq. The report will be released at 10:30 Eastern. CNN will have that live.

And in Indonesia, an American Army sergeant accused of defecting to North Korea 39 years ago is being reunited with his wife at this hour. She is a Japanese woman kidnapped by North Korea decades ago.

Keeping you informed, CNN, the most trusted name in news.

Let's get our first look at the weather for this hour with Chad Myers -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Fredericka.

(WEATHER REPORT)

WHITFIELD: The dispute over Israel's barrier -- documents have been popping up on the Internet, but at the Hague, the International Court of Justice says it will release the only authentic document later on this morning. The court will issue its advisory opinion on whether the barrier Israel is building across the West Bank is legal. CNN correspondent Alessio Vinci is at the barrier near Ramallah -- Alessio.

ALESSIO VINCI, CNN CORRESPONDENT: Hello, Fredricka.

Well, the highly respected newspaper "Ha'Aretz" is reporting this morning that the International Court of Justice will actually release its opinion later today that Israel will have to dismantle the barrier that has been built for the last year and a half and also pay compensation to those Palestinians who have been affected by the construction of that temporary barrier -- temporary, that's how Israel calls it.

Of course, this is because, on the basis of the material, according to "Ha'Aretz," that the court has analyzed and obtained, the court is basically not convinced of the specific route that this barrier has been built and that this barrier has been built because of the security concerns of Israelis.

As well, the "Ha'Aretz" is reporting that the court believes that by building this barrier in portions of the occupied West Bank, that is, the barrier is going against international humanitarian now because it divides Palestinians from their land and from their homes. And therefore it is expected later today that the International Court of Justice will issue a ruling against Israel.

Now, of course, this ruling is not -- a non-binding ruling. Israel does not have to abide by this ruling. It doesn't mean that the construction of the barrier will stop. As a matter of fact, Israeli officials have said that the International Court of Justice is not competent to judge and to give its opinion on such an issue, saying that it is a matter that has to be discussed between Palestinian and Israeli officials. It is a security concern, Israeli officials say, and therefore it is not a matter for an international body.

Back to you, Fredricka.

WHITFIELD: And, Alessio, describe for us the exact location where you are. There is a barrier behind you. But describe the scene there for us.

VINCI: Right. I'm going to step out of the way for a second, also, to give you a bit of a glimpse about what this barrier looks like. As a matter of fact, most of the barrier, which has so far been built, about 440 miles of it, is not like the one you see here, which is, as you see, concrete wall. As a matter of fact, less than 5 percent of the barrier that has already been built is actually concrete barrier. Most of it, so far, has been built, 115 miles or so of it, is chain link fence surrounded by barbed wire and a ditch in order to prevent cars from driving through it.

This is a main checkpoint manned by Israeli forces, of course, and it is for all the Palestinians that live in the north part of the West Bank who are trying to reach Israel proper, or Jerusalem. They have to go to this gate. And this is exactly what the Palestinians are saying, that this fence, or this barrier, as a matter of fact, will actually prevent them from moving freely from one side or the other of the West Bank -- back to you.

WHITFIELD: Alessio Vinci in Ramallah.

Thanks very much.

An official announcement today coming out of the Hague in a few hours from now.

We could learn more today about the circumstances surrounding the capture and release of U.S. Marine Corporal Wassef Ali Hassoun. He was reported missing in Iraq in June and wound up in Lebanon at the home of relatives this week. In between, he appeared blindfolded on a video and was threatened with beheading.

His brother in Utah talked with him by phone.

(BEGIN VIDEO CLIP)

MOHAMAD HASSOUN, BROTHER: He sounded OK. I was told that he had lost some weight, but he's well.

(END VIDEO CLIP)

WHITFIELD: Hassoun is expected to be flown to Germany today for a medical checkup and debriefing.

Let's look at developments on the ground in Iraq in our situation report.

An American soldier has died from wounds he suffered in fighting in Baghdad. That brings the total number of coalition troop deaths to 1,000; 880 of them Americans.

Time is running out for two Bulgarians taken hostage in Iraq. A group loyal to Abu Musab al-Zarqawi is threatening to kill the men if the U.S. does not release all Iraqi detainees. The militants set a 24 hour deadline.

Saddam Hussein's only American attorney has turned to the U.S. Supreme Court for help. He says the dictator's detention violates international and U.S. laws, including Saddam's constitutional right to due process.

Meanwhile, militants are vowing to behead any lawyers who defend Saddam Hussein. A group belonging to the Islamic Jihad delivered the threat on a videotape.

Well, what does Saddam Hussein have to say? Excerpts from a novel supposedly written by the deposed Iraqi dictator are being printed in a London-based Arab newspaper. The newspaper says it received the manuscript from Saddam's personal physician, who fled Iraq after the war. As expected, the book, titled, "Get Out, You Damned" is about the fight between Arabs and Westerners. On Capitol Hill this morning, the CIA could be raked over the coals for its prewar intelligence leading up to the Iraq war. A Senate committee is releasing what we're told will be a scathing report. CNN will have live coverage when the report is released at 10:30 Eastern time this morning, 6:30 Pacific.

There are no specifics, but the Homeland Security Department is telling you to be on alert. Homeland Security Secretary Tom Ridge warned that al Qaeda is planning a large scale attack in the United States before the November election.

(BEGIN VIDEO CLIP)

TOM RIDGE, HOMELAND SECURITY SECRETARY: We live in serious times and this is sobering information about those who wish to do us harm. But every day, every day we strengthen the security of our nation. And as a nation, we are committed to the absolute protection of our citizens. Efforts each of you make to be vigilant, such as reporting suspicious items or activities to authorities, do make a difference.

(END VIDEO CLIP)

WHITFIELD: And you can hear more about this from the homeland security secretary himself when he appears on "AMERICAN MORNING" in the next hour.

But what about the threat to the two upcoming political conventions?

As CNN's Jason Carroll reports, officials in Boston and New York have already been working overtime on their security plans.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT (voice-over): Delegates arriving in Boston for the Democratic National Convention will see security signs long before arriving at the Fleet Center, the site of the convention. Several major bridges, tunnels and an interstate near the center will be closed.

ED FLYNN, MASSACHUSETTS SECURITY SECRETARY: We've worked hard to call upon all of our available assets, from the Boston police, the MBTA police, the state police, federal agencies, area police departments, regional planning groups.

CARROLL: The Secret Service is working with Boston authorities. Subway riders will be subject to random searches. Specially trained civilian volunteers will help.

(on camera): In New York, numerous security measures are planned here at Madison Square Garden, where a 19 block perimeter will surround the site during the Republican National Convention at the end of August.

(voice-over): Some obvious signs in the area -- trash cans will be removed, manhole covers sealed. The Secret Service is involved here, too, especially addressing transit concerns. Police say they reconfigured their transit security plans immediately after a recent trip to Madrid, Spain, where they learned from authorities there what worked and didn't following a terrorist attack in March.

RAYMOND KELLY, NYPD COMMISSIONER: We do not think another attack is inevitable. But we do think that they will try. Our job is to stop them.

CARROLL: In both cities, some of the most sensitive security measures won't be visible. Another non-specific terrorist threat has left some feeling security fatigue.

UNIDENTIFIED MALE: I guess I'm starting to get frustrated by it.

UNIDENTIFIED MALE: Our guard's up anyway here in New York and people are just going to have to be vigilant.

CARROLL: And being vigilant is what authorities in both cities are counting on.

Jason Carroll, CNN, New York.

(END VIDEOTAPE)

WHITFIELD: President Bush heads for Pennsylvania this morning. He has three stops scheduled in the Keystone State and perhaps a few that are not scheduled. At Kutztown University, Mr. Bush will answer questions at an Ask The President event. Then he'll speak in Lancaster before ending a campaign day with a rally in York.

The Pentagon says some of the military records of First Lieutenant George W. Bush were inadvertently destroyed. The destroyed records cover three months during Bush's service in the Air National Guard and the "New York Times" says the records could have established if Bush served in Alabama, as he claims.

Senator John Kerry grabbed a guitar and helped entertain the crowd last night at Radio City Music Hall. Kerry and running mate John Edwards attended two breakfast receptions this morning in New York. Then they head for rallies in West Virginia and New Mexico.

John Kerry told CNN's Larry King last night that Senator Edwards can provide the Democratic ticket with reality checks. And Kerry says he needs that.

(BEGIN VIDEO CLIP FROM CNN'S "LARRY KING LIVE")

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I think that a team is important. I think America wants leadership, Larry, that just tells the truth, deals with real issues and is willing to lift this country up. I think John is the kind of person who is optimistic, connected to small town rural America. He knows the problems and he's the kind of person who's going to look me in the eye and not be afraid to say you're wrong, this is the way we've got to go.

(END VIDEO CLIP) WHITFIELD: Some Republicans have said Kerry chose Edwards after Republican Senator John McCain turned down the second spot on the Democratic ticket. Kerry denied that last night, saying he never made an offer to McCain.

One of John Kerry's biggest supporters will face off this afternoon in a 90 minute debate with independent candidate Ralph Nader. Howard Dean has said that voting for Nader could help re-elect President Bush. In 2000, the Democrats largely ignored Nader's Green Party campaign.

Still to come on DAYBREAK, we'll talk more about the threat warning from the Homeland Security Department. Does the average American citizen need to be concerned?

Then, did he really say that? A member of Governor Schwarzenegger's cabinet is in trouble with some Californians for what he said to a child.

And a major chemical company accused of harming the health of its neighbors. Find out what the EPA plans to do about it.

And later, somebody's got two left feet. Well, make that 312. We'll explain.

This is DAYBREAK for July 9.

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WHITFIELD: Your news, money, weather and sports.

It's now 15 minutes after the hour.

Here's what's all new this morning.

The "Tribute In Light" will continue to shine. More than $3 million have been set aside to allow the September 11 memorial to be relit on the anniversary of the attacks for the next five years. The lights symbolize the Twin Towers.

Transportation safety officials say improperly installed oil filters are the likely cause of more than two dozen Honda SUV fires. The "Washington Post" reports that 27 Honda CRVs caught fire shortly after having their first oil change. No one has been injured in the fires.

In money, First Energy Corporation has agreed to pay more than $1 billion to clean up its act. The company had been sued over excessive emissions from its coal burning power plant near Steubenville, Ohio.

In culture, singer David Bowie is finally back home following his emergency heart surgery. Bowie spent nearly three weeks in a German hospital after undergoing surgery to unclog a blocked artery. He was forced to cancel the remaining dates on his European tour.

In sports, one day after capturing the yellow jersey, Lance Armstrong falls back in the pack in the Tour de France. Armstrong is in sixth place, nine minutes, 35 seconds behind the leader. And I have a feeling, Chad...

MYERS: That got a little ugly right in there.

WHITFIELD: Yes, those little snarls on the road there are not pretty ever.

MYERS: Remember when you fell off your bike when you were a kid? That was just a traumatic event.

WHITFIELD: That was devastating.

MYERS: Yes, you lost some skin on your knee...

WHITFIELD: We didn't know devastating, did we? This is that.

MYERS: Good morning, everybody.

WHITFIELD: You know.

MYERS: Good morning, Fred.

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WHITFIELD: Those are the latest headlines.

Well, time for a little business buzz now.

You may be cooking breakfast on your favorite non-stick pan about right now. But that Teflon coating could cost Dupont millions of dollars in fines, apparently.

Carrie Lee explains.

CARRIE LEE, CNN CORRESPONDENT: Thank you, Fredricka.

The Environmental Protection Agency is preparing to levy a multi- million dollar fine against Dupont for a chemical it uses when it makes products such as Teflon, Gortex and Stain Master carpeting. Obviously, a lot of people use these products.

Now, it's not a problem to use these products as a consumer. So let me make that very clear. The issue is in the manufacturing of these products. The complaint here states that Dupont did not tell the EPA until 2001 that the company found this chemical in blood samples taken back in 1981 from its pregnant workers, in one case including evidence that the chemical had passed to the fetus of that worker.

Also, tests by 3M, the company that originally made this chemical, which is, in some circles, called C8, has shown high exposure levels can cause problems like liver damage and also reproductive problems in rats. So we're talking about the manufacturing of this chemical.

Finally, in West Virginia, in 1991, the company found the chemical in public water supplies in the towns.

So what the EPA is looking at here is the agency can seek fines of up to $25,000 per day for each day Dupont failed to report this information prior to 1997. So we're talking about potentially $300 million in fines.

For its part, Dupont says it has fully complied with reporting requirements. The company disputes any association between the chemical and harmful effects on humans or the environment. So a very big story out of Dupont and that is a big story we're following today.

And that is the latest business news.

DAYBREAK will be right back.

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WHITFIELD: Well, time to check our DAYBREAK legal briefs.

Kobe Bryant's accuser has hired a high profile attorney to handle media concerns. Several media outlets have petitioned to have details of the case released to the public. The 20-year-old woman hired Atlanta attorney Lynn Wood. Wood, you may remember, was the attorney for JonBenet Ramsey's parents and for mistaken Olympic bomber Richard Jewell.

There's a scheduled hearing today in the Michael Jackson case. The judge will hear arguments over a motion to throw out the indictment. Defense attorneys claim the prosecution bullied witnesses in an effort to secure the indictment. Jackson is not expected to attend today's hearings.

How much fat is in the fries? McDonald's has been sued in federal court over its failure to switch over to reduced fat cooking oil. The fast food giant had announced a February 2003 deadline for changing its oil, so to speak. But McDonald's says the change was delayed due to concerns over product quality.

On the docket today, former Enron chief Ken Lay, Adelphia's John Rigas and Martha Stewart.

Legal analyst Kendall Coffey joins us live from Miami, a whole lot.

Let's begin with Ken Lay.

How about that?

KENDALL COFFEY, CNN LEGAL ANALYST: Well, it...

WHITFIELD: Good to see you this morning, first of all.

COFFEY: Great to see you, Fredricka.

And something that a lot of people were waiting for for a long time. Enron was seen as the biggest of all the pirate ships in that fleet that had been sinking Wall Street for a period of time. And Ken Lay, the captain of the ship, is finally facing very, very serious charges, brought into the same conspiracy with former President Jeff Skilling, chief accountant Richard Causey. And they are facing a long trial and a huge prison exposure if convicted.

WHITFIELD: Let's analyze a little bit of what happened yesterday involving Ken Lay. He turned himself in to the FBI and then afterward he very openly approached the cameras. He even acknowledged the cameras when he was checking in, you know, to turn himself in. But afterwards, he addressed the cameras and he said, "I continue to grieve, as does my family, over the loss of the company and my failure to be able to save it. But failure does not equate a crime."

How smart was it for him to, A, acknowledge that there was a problem, but at the same time try to separate himself from the crimes in which he's being charged?

COFFEY: Well, it was an extraordinary thing because at first, one of the first rules of criminal defense is you don't let your client talk. But Ken Lay is not the advantage defendant in the Houston area. He's gone from being a local hero to being a local scoundrel, in the eyes of many. And for that reason, he's so well known that he may think it's very important to send his own personal message not only to the people of Houston, but to potential jurors.

And to acknowledge that things weren't done right is something he's got to do anyway. Everybody knows that Enron was a catastrophe. To say that he did nothing wrong in a criminal sense is the very same message he's going to want to be arguing to that jury.

WHITFIELD: At least a couple dozen indictments have been handed down to various Enron workers. Ken Lay tried to place the blame, also, yesterday. He says it wasn't me, but instead it was CFO Andy Fastow who really is to blame in all of this.

COFFEY: Very predictable, standard stuff. He's a hear no evil, see no evil guy. Even though he was making all that money, he had no idea what was going on because it was all being done by the evil geniuses like Andrew Fastow in the finance department.

We'll see if the jury buys that.

WHITFIELD: He's facing some pretty serious time if found guilty, 175 years in prison, upwards of $5 million in fines. And now apparently the federal government is trying to seize Houston property, his condominium, which is being alleged to have been purchased through monies he gained from Enron.

COFFEY: One of the new phases...

WHITFIELD: What's the difficult of that?

COFFEY: Well, it's a very big problem because one of the new things in the new phase of corporate criminality that began in the post-Enron era is using some of the same tactics that they used to use against drug dealers like freezing assets. They froze Andrew Fastow's assets, Skilling and now Lay is facing that, which creates a huge problem, everything from supporting your family to paying your lawyers.

WHITFIELD: Adelphia founder John Rigas found guilty yesterday of conspiracy, securities fraud and bank fraud. I wonder how much this verdict might, indeed, impact the upcoming Enron trials, as well as next week's scheduled sentencing for Martha Stewart.

COFFEY: Well, that is a powerful message, that verdict. And certainly it's an important validation for the Department of Justice. I think Martha Stewart is going to stand on her own merits. And there's been a lot she's trying to do to avoid jail time. I don't think she's going to be successful. But don't be surprised, Fredricka, if you see some kind of split sentence, something like 10 or 12 months, where she may be able to serve half of it or some part of it in home confinement, the rest in a federal low security prison.

WHITFIELD: Interesting.

Kendall Coffey from Miami, thanks very much.

Good to see you this morning.

Have a great weekend.

COFFEY: Thanks for inviting me.

WHITFIELD: And here's what's all new in the next half hour.

Al Qaeda plotting an attack in the United States -- do Americans really take the warning seriously?

And secrecy surrounding Gitmo -- I'll talk to Bob Franken about what's happening with the detainees in Cuba.

Then, hear the comment from California's education secretary that has some people demanding his resignation.

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